Retirement Systems
Enrollment
- Staff positions automatically participate in the Ohio Public Employees Retirement System (OPERS),
- Faculty positions contribute to the State Teachers Retirement System (STRS),
- Law enforcement officers contribute to a special branch of OPERS for Law Enforcement Officers (LEO).
- Full time employees also have the option to choose the Alternative Retirement Plan (ARP) instead of OPERS/LEO/STRS. This must be elected within 120 days of start date.
The University’s contributions for OPERS, LEO, and/or STRS are fully vested after five years. This means that members will receive unreduced benefits at retirement age. For ARP members, vesting is immediate.
In addition to the required retirement contributions we also offer Voluntary 403b and 457b Retirement Plans. These are plans that you can additionally contribute to, to save additional funds for your retirement.
OPERS & LEO
1-800-222-7377
www.opers.org
For OPERS forms click here.
What is OPERS?: Ohio Public Employees Retirement System-All employees who are paid in whole or in
part by the state of Ohio, a county, municipality, or any other political subdivision
of state or local government in Ohio must become members of OPERS unless they are
covered by another state retirement system in Ohio or by the Cincinnati Retirement
System. Membership begins from the first date of employment.
LEO PDF Handout
What is LEO: LEO is the Law Enforcement Public Safety Officers section of OPERS. This is offered
only to our law enforcement officers within the University or Hospital.
STRS
1-888-227-7877
www.strsoh.org
What is STRS?: State Teachers Retirement System of Ohio is one of the nation’s leading retirement
systems, serving about 500,000 active, inactive and retired Ohio public educators.
For STRS forms click here.
ARP
Alternative Retirement Plans (401a)
Vendor Contact List and Codes
Plan Document
For ARP Forms click here
What is ARP?: The ARP plans are considered a 401a type retirement plan. This option gives you
the choice to seek out the option to invest your money into mutual funds with one
of our vendors off our Vendor Contact list above. You have 120 days from your hire
date to choose this option. This option is only available to full time employees.
Retirement Benefit Plan Eligibility
Retirement benefit plan eligibility is based upon the appropriate plan in which an employee participates. The following defines the age and/or service requirements under each plan to be eligible for retirement under the State of Ohio Retirement System.
Requirements to Receive Distributions
| OPERs/LEO | Traditional Pension | Member Directed |
| Unreduced | -*65 years of age with 5 years of State of OH Public service OR -*Any age with 30 years of State of OH Public service |
-*Age 55 – no service requirement. |
| Reduced | -*60 years of age with 5 years of State of OH Public service -*55 years of age with
25 years of State of OH Public service OR -*Any age with 30 years of State of OH Public service |
| STRS | Defined Benefit | Combined Plan | Defined Contribution |
| Unreduced | -*65 years of age with 5 years of State of OH Public service OR -*Any age with 34 years of State of OH Public service |
-Eligible for defined benefit payments at age 60 with five years of service. | -Age 50 – no service requirement |
| Reduced | -*55 years of age with 29 years of State of OH Public service OR -*60 years of age with 5 years of State of OH Public service OR -*Any age with 30 years of State of OH Public service |
-Confirm with https://www.strsoh.org/
|
|
| ARP | |
|
Distributions |
-Any age (withdrawals made before age 59½ may be subject to an additional federal penalty) |
Retirement System Contributions (effective 7/2022)
| Retirement Plan | Employee Contribution (mandatory) | Employer Contribution |
| STRS | 14% | 14% |
| Faculty-ARP | 14% | 14% (11.09% to Plan, 2.91% Administrative Fee*) |
| OPERS/LEO | 10% | 14% |
| Staff-ARP | 10% | 14% (11.76% to Plan, 2.24% Administrative Fee*) |
| *Employer ARP Mitigating Contribution. This Rate will adjust downward on 7/1/2022 | ||
Voluntary Retirement Plan-403b
Vendor Contact Information
What is a Voluntary Retirement Plans (VRP)?: It is a plan that allows employees to put aside money into an investment account,
which can build income for retirement. Since contributions are taken from your salary
before taxes are deducted, you receive an immediate tax-break. Your current taxable
income is lowered for the year. Investing through the VRP only reduces your pay for
income tax purposes; it does not affect how pay raises are calculated or any other
benefits that are based upon pay.
You may sign up for a VRP, discontinue or make changes to your current VRP at any time during the year. To sign up for a VRP, please complete the following steps:
Please visit Retirement@Work to enroll, unenroll or make changes to your VRP. Please note you must have an account set up with your preferred Vendor listed in the contact pdf above before enrolling at Retirement@work.
Note: Employees who are on a 9-month appointment will have 19 deductions per calendar
year, and 12-month employees will have 26 deductions per calendar year. Deductions
will begin on the pay date you indicate, if received within the payroll-processing
deadline. Student Employees are not eligible for a 403b plan.
Retirement@Work
Retirement@Work User Guide
2022 Universal Availability Notice
Vendor Comparison Guide
Voluntary Retirement Plan-457b
A Voluntary Retirement Plan (VRP) allows employees to put aside money into an investment account, which can build income for retirement. Since contributions are taken from your salary before taxes are deducted, you receive an immediate tax-break. Your current taxable income is lowered for the year. You may sign up for a VRP, discontinue or make changes to your current VRP at any time during the year.
For more information about the 457 and how to enroll, please review the materials and ODC website listed below.
Ohio Deferred Compensation website
877-644-6457
EZ Enrollment Form
Note: Employees who are on a 9-month appointment will have 19 deductions per calendar year, and 12-month employees will have 26 deductions per calendar year. Deductions will begin on the pay date you indicate, if received within the payroll-processing deadline.
For Guidance on rolling over your Sick/Vacation pay to your 403b or 457b when you retire, review this document!
Statement Concerning Your Employment in a Job Not Covered by Social Security
Your earnings from this job are not covered under Social Security. When you retire, or if you become disabled, you may receive a pension based on earnings from this job. If you do, and you are also entitled to a benefit from Social Security based on either your own work or the work of your husband or wife, or former husband or wife, your pension may affect the amount of the Social Security benefit you receive. Your Medicare benefits, however, will not be affected. Under the Social Security law, there are two ways your Social Security benefit amount may be affected.
Windfall Elimination Provision
Under the Windfall Elimination Provision, your Social Security retirement or disability benefit is figured using a modified formula when you are also entitled to a pension from a job where you did not pay Social Security tax. As a result, you will receive a lower Social Security benefit than if you were not entitled to a pension from this job. For example, if you are age 62 in 2005, the maximum monthly reduction in your Social Security benefit as a result of this provision is $313.50. This amount is updated annually. This provision reduces, but does not totally eliminate, your Social Security benefit. For additional information, please refer to Social Security Publication, “Windfall Elimination Provision.”
Government Pension Offset Provision
Under the Government Pension Offset Provision, any Social Security spouse or widow(er) benefit to which you become entitled will be offset if you also receive a Federal, State or local government pension based on work where you did not pay Social Security tax. The offset reduces the amount of your Social Security spouse or widow(er) benefit by two-thirds of the amount of your pension.
For example, if you get a monthly pension of $600 based on earnings that are not covered under Social Security, two-thirds of that amount, $400, is used to offset your Social Security spouse or widow(er) benefit. If you are eligible for a $500 widow(er) benefit, you will receive $100 per month from Social Security ($500 - $400=$100). Even if your pension is high enough to totally offset your spouse or widow(er) Social Security benefit, you are still eligible for Medicare at age 65. For additional information, please refer to Social Security Publication, “Government Pension Offset.”
For More Information
Social Security publications and additional information, including information about exceptions to each provision, are available at www.socialsecurity.gov. You may also call toll free 1-800-772-1213, or for the deaf or hard of hearing call the TTY number 1-800-325-0778, or contact your local Social Security office.
Information about Social Security Form SSA-1945
Statement Concerning Your Employment in a Job Not Covered by Social Security
New legislation [Section 419(c) of Public Law 108-203, the Social Security Protection Act of 2004] requires State and local government employers to provide a statement to employees hired January 1, 2005 or later in a job not covered under Social Security. The statement explains how a pension from that job could affect future Social Security benefits to which they may become entitled.
Form SSA-1945, Statement Concerning Your Employment in a Job Not Covered by Social Security, is the document that employers should use to meet the requirements of the law. The SSA-1945 explains the potential effects of two provisions in the Social Security law for workers who also receive a pension based on their work in a job not covered by Social Security. The Windfall Elimination Provision can affect the amount of a worker’s Social Security retirement or disability benefit. The Government Pension Offset Provision can affect a Social Security benefit received as a spouse or an ex-spouse.
Employers must:
- Give the statement to the employee prior to the start of employment;
- Get the employee’s signature on the form; and
- Submit a copy of the signed form to the pension paying agency.
Social Security will not be setting any additional guidelines for the use of this form.
Copies of the SSA-1945 are available online at the Social Security website, www.socialsecurity.gov/form1945. Paper copies can be requested by email at oplm.oswm.rqct.orders@ssa.gov or by fax at 410-965-2037. The request must include the name, complete address and telephone number of the employer. Forms will not be sent to a post office box. Also, if appropriate, include the name of the person to whom the forms are to be delivered. The forms are available in packages of 25. Please refer to Inventory Control Number (ICN) 276950 when ordering.
Are You Ready to Retire?
There are important factors to consider when you are looking to retire. Working with
your retirement vendors and HR will help you through the process and ensure you have
a smooth transition to retirement. The retirment age for additional UToledo retiree
programs is age 65.
If you are preparing to retire within the next several months please check out several
items listed below that can help assist you on this pathway.
Please check to see when our next Retirement Planning session is here.
Employee contributions are "deducted" by the University from the employee's gross pay and paid directly to the retirement systems, thereby enabling employees to defer current federal and state taxes on this income.
Click the link for further details on separation of service from the University
The Coronavirus Aid, Relief and Economic Security (CARES) Act
The Coronavirus Aid, Relief, and Economic Security (CARES) Act allows retirement plan sponsors to offer participants additional financial relief. The Retirement Review Committee has voted for the following provisions pursuant to the CARES Act:
403(b) Coronavirus Related Distributions: The CARES Act waives the 10% early withdrawal penalty and 20% withholding for a Coronavirus Related Distribution (CRD) up to $100,000. These distributions will be subject to taxation; taxes may be paid over a three year period.